Following in the steps of precedent setting legislation mandating women on boards two years ago, on September 30, 2020, California Governor Gavin Newsom signed AB 979 into law mandating diversity on certain public company boards of directors. The new law requires publicly held corporations headquartered in California to include at least one person from an underrepresented community by the end of next year, with additional appointments required in future years.
The new legislation is the first of its kind in the U.S. and is the second time California seeks to mandate diversification of public company boards through legislation. (Read more about the 2018 legislation requiring companies to put female directors on their boards here.) The first piece of legislation aimed at increasing gender diversity; AB 979 seeks to increase diversity from “underrepresented communities.”